The Importance of Tracking Income Streams and Staff Hours

The Importance of Tracking Income Streams and Staff Hours

Tracking income stream and staff hours are two of the most important metrics that should be collected on a regular basis to ensure that a business stays on track. If time and income tracking are lax, businesses tend to falter in terms of project management. The business will have some issues delivering pending jobs on time and within budget.

Businesses and charitable institutions alike invest considerable amount of time to accomplish their goals especially if they are understaffed and underfunded. Project management will require you to juggle multiple roles in order to be effective. As such, you will likely be dividing your time between assorted responsibilities.

Keeping Track of Your Income

It is very important for any business to keep track of its income stream and expenses. This is to prevent any bad financial situations in the future. By keeping track of your income, you would be able to effectively come up with wise financial decisions and you would be able to allocate your funds for various expenses that your business needs.

Keeping track of your business’ income stream is even more essential in situations wherein your income fluctuates from time to time. For instance, businesses that do well on summer have more income at their disposal during this season. However, during slow income seasons, they need to adjust their expenditures in order to compensate their reduced income. By carefully tracking the way their income fluctuates during these times of the year, a business would be able to re-evaluate its financial goals so that it will coincide with the income fluctuations.

You might think that it is easy to determine how much your flow of income is since you can see the amount printed on your pay check or bank account. In reality, there is more than just your salary and revenue as sources of income. You also need to keep track of other things such as your investments.

In order for you to effectively determine your income and expense, you need to make sure that you are recording everything. It is ideal that you follow a comprehensive bookkeeping method. With the help of technology, people have been able to keep track of their income streams with the help of money management software. With the help of modern technology, people had been able to keep track of their income streams more effectively.

Keeping Track of Staff Hours

Small and large businesses alike are struggling with tracking their employees’ time. Most people have this misconception that only large companies should be the ones closely monitoring their employees’ time. However, if you are aiming to meet deadlines in a timely manner and profitability is also important to you then keeping track of staff hours can make a huge different whether your business is big or small. Here are some of the benefits of keeping track of staff hours:

1. Measurement of Performance and Easy Planning

Keeping track of staff hours can provide you important metrics that can be very valuable when it comes to streamlining your business processes while improving workforce productivity. By being able to know whether your employees are working on a certain project and how much time they have invested on it, you would be able to determine which aspect of the project needs improvement so that you would be able to work on it.

2. Easy Payroll

Tracking staff hours will help you prepare and process payroll easily. Having a reliable time tracking software enables you to determine billable and none-billable hours as well as the overtime hours that your employees have incurred. Since you have the exact number of hours that your employees have worked, you would be provided the confidence that you are paying the employees for the exact time they have worked for your company.

3. Better Attendance

Businesses who track their employees’ time have better attendance record. With all the technology that aids in time tracking, gone are the days when people can clock for another person. This can cause problems internally and can result to poor attendance among the employees.

Here are the different ways wherein you can track an employee’s time:

• Manual Time Tracking

There are still businesses that make use of the manual methods of time tracking. However, this method can be very time-consuming and has many room for errors. To some, this type of time tracking is user-friendly but some businesses has completely ditched it in favor of newer ways of timekeeping.

• Online Time Clocks

This type of time tracking enables employees to record timesheets on the internet. Since these systems are based online, there is no need to overhaul your business’ existing infrastructure. Like other existing time tracking software, it comes with reporting feature that comes handy in terms of recording purposes.

• Time Tracking Software

Another popular way of tracking time is installing time tracking software on your employees’ computers. This method can help you monitor your employees’ hours real-time. As your employees work, the time tracking software would not only be able to record time but also keep track of their online activities.

Tracking income streams and staff hours have helped businesses to reach their goals. You would not only be able to increase your employees’ level of productivity but will also provide you opportunities to increase your revenue. Therefore, it is important that every business need to practice time and income tracking to full realize their business’ potential.